Learn COST REDUCTION IDEAS that would boost profits, cut losses and improve productivity of the manufacturing unit whether Big ,Medium or Small . Ideas which are easy to understand &Implement. Each idea has potential of saving upto 20-30%.

What is cost reduction ?

Cost reduction can be achieved through reduction , elimination , modification of manufacturing activity. Throughin depth analysis the best and least cost path is adopted for each activity.The best method to achieve results are to bench mark operating parameters to world class companies .This drives every one to match or even surpass these figures.

The major parameters for any manufacturing unit

cost per unit ($/unit)

man-hours/unit

units produced/unit time

break down time (%)

change over time ( min/hrs )

waste (%)

defectives (%)

fuel consumption (k therms/unit)

electricity consumption (kwh/unit)

water consumption ( kltrs /unit )

inventory turnover ( %)

lead time (min/hrs / days)

Why cost reduction ?

profits

waste reduction

increase productivity

competition

resource conservation

image enhancement

Where to implement cost reduction

Areas for cost reduction are

raw material procurement

logistics - inbound and outbound

production ( process ,time and work study,maintenance ,automation)

energy

human resource ( out sourcing )

sales & marketing

finance

How ?

In today’s competitive world corporates and businesses are struggling to maintain profits and healthy bottom lines .Cost of production ,fuel, raw material and human resources is rising each year .These developments has prompted people to look for Cost reduction Ideas &method s. Those who have opted for focused cost reduction strategies have survived those who could not managed have perished .In recent economic down turn it becomes more important to make cost reduction program a major initiative in industry .Companies are finding it difficult to retain people and are laying off people which is un precedented in recent history of industrial recession .Companies have to develop its own cost reduction program for savings without cutting jobs .